On Friday 20 November, the European Commission validated a 30 billion euros German scheme to support the uncovered fixed costs of companies whose activities are suffering from the effects of the coronavirus pandemic. The scheme was approved under the Temporary Framework for State Aid.
Margrethe Vestager, the Executive Vice-President in charge of Competition Policy, pointed out that many shops, restaurants and other businesses have faced a significant drop in turnover as a result of the restrictions.
Germany has notified the Commission of a new scheme to provide further support to companies. Extraordinary economic aid is planned for all businesses, self-employed individuals, associations and institutions whose activities are temporarily interrupted due to health measures. The budget for this support is estimated at 30 billion euros. It allows the German federal and regional authorities to set up support programmes for companies that have suffered a turnover decline between March 2020 and June 2021 of at least 30% compared to the same period in 2019. This support will help them to pay 70% (90% in the case of micro and small companies) of their fixed costs that are not covered by revenues, up to a maximum of 3 million euros per company. (Original version in French by Lionel Changeur)